Businesses above GH¢750,000 turnover must register for VAT – GRA

The Ghana Revenue Authority (GRA) has announced that businesses with annual taxable turnover surpassing GH¢750,000 must register for Value Added Tax (VAT) and adhere to the regulations of the Value Added Tax Act, 2025 (Act 1151). Dr Martin Kolbil Yamborigya, the Commissioner of Domestic Tax Revenue at GRA, emphasized that entities engaged in taxable activities surpassing the prescribed limit are legally obligated to register and collect VAT.

Addressing this matter on Joy FM’s Super Morning Show on September 15, Dr Yamborigya emphasized the importance of compliance, warning businesses against intentionally avoiding registration. He clarified that non-registration would not exempt them from their tax obligations, stating that the law still considers them registered and responsible for charging the tax.

Failure to register could result in businesses being held accountable for unpaid taxes owed to the government. The GRA is launching an education and compliance campaign, including site visits to verify registration, invoicing, and tax adherence. Authorities will also assess whether businesses accurately calculate tax and issue compliant VAT invoices.

Dr Yamborigya urged consumers to advocate for proper VAT invoices when making taxable purchases, advising them to request them before completing transactions. The GRA's initial efforts will focus on education and taxpayer compliance, with subsequent measures targeting non-compliant entities, including penalties, interest, and other enforcement actions.